SOUTH Korea's largest shipping company Hyundai Merchant Marine (HMM) says it will buy a 100 percent stake in the Total Terminal International Algeciras (TTIA) in Spain, formerly operated by the defunct Hanjin Shipping, for KRW117.6 billion (US$104.02 million).
The company said in a regulatory filing on May 11 that the money to be used to make the purchase is equivalent to 12 per cent of the company's net worth as of late 2016 and 2.7 per cent of its total assets. The formal contract will be signed today, May 15, according to Business Korea.
The TTIA terminal is strategically located where Europe, Africa and South America intersect and has an annual handling capacity of 1.86 million TEU. It can accommodate large container ships with capacities of over 10,000 TEU. Global leading container shipping companies use the terminal such as Maersk Line, CMA CGM and COSCO.
The company said: "The contract is to acquire a 100 percent stake in the TTIA owned by special-purpose company Algeciras Terminal Investment in order to secure the market competitiveness and expand the business basis. Currently, we are planning to buy the terminal on our own but we can purchase it through a joint venture in the future."
